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Will Regulations Kill the Rally?



July 09, 2010 – Comments (0)

Once again, the unintended consequences of a Congressional Law, may disrupt the stock market rally, scare citizens into holding onto their cash and send the economy into a tailspin.  All of this is possible from one law designed to PROTECT the American public.  The 2002 Sarbanes-Oxley Act clearly puts the CEO and the company as a whole on notice if they make any future forecast of earnings that ends up falling short.  And right now, the market is looking toward those future forecasts (read this)

This wonderful law may mute very real expectations for fear of a miss and the ensuing legal entangle.  I'm not arguing this law will derail the recovery, because there is no recovery to speak of, but rather dampen future expectations that will trickle through the economy and make a bad situation worse.  

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